QuickSTAT specializes in end-to-end transport for clinical research specimens, investigational drugs, clinical trial supplies and personalized medicine in all temperature ranges in a stringent compliance environment helping to bring new drugs and medical protocols to market.

Sterling Aviation, a leader in specialized global aviation logistics handling the most urgent aircraft parts in a time critical, high visibility, highly monitored, precise, best in class collaborative and innovative Control Tower environment from production to after market . AOG specialist helping to keep aircrafts flying and striving to minimize the impact of AOG situations for aircraft operators, OEMs and MROs.

“This acquisition is an important milestone in the implementation of our solutions strategy and a confirmation of our leading position in airfreight. With its unique expertise in time-critical shipments in the fields of aviation and pharma & healthcare – both key strategic focus and investment areas for Kuehne + Nagel – the company perfectly complements our existing global portfolio. Our customers will benefit from a much greater scope of services and capability for time-critical shipments, while Quick’s customers will get access to Kuehne + Nagel’s global network across more than 100 countries”, says Yngve Ruud, Member of the Managing Board of Kuehne + Nagel, responsible for airfreight.

Founded in 1981 and headquartered in Jamaica, NY, Quick has about 550 employees specialised in “Next Flight Out” and “Next Drive Out” shipments among others. These shipments are usually urgent in nature and often global, complex and logistics intense with a high cost of failure while operated with strictly defined protocols and control points from order to delivery. Quick deploys different key regional support centres and control towers all over the world.

“We are looking forward to become part of the Kuehne + Nagel Group. Joining forces with one of the leading logistics providers offers us new growth perspectives within a worldwide operating network”, says Dominique Bischoff-Brown, CEO of Quick International Courier.

Both parties agreed not to disclose the purchase price. The acquisition is subject to customary closing conditions and to clearance by the competent merger control authorities.

]]>Schindellegi / CH, October 18, 2018 – The Kuehne + Nagel Group significantly increased EBIT and earnings for the period in the first nine months of 2018. The conversion rate (EBIT-to-gross-profit ratio) remains at a high level. The company achieved strong volume growth, with a particularly dynamic development in seafreight.

Kuehne + Nagel Group

January to September 2018

January to September 2017

Variance

CHF million

Net turnover

15,361

13,525

+13.6%

Gross profit

5,736

5,136

+11.7%

Operational result (EBITDA)

906

840

+7.9%

EBIT

745

685

+8.8%

Earnings for the period

580

540

+7.4%

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “Kuehne + Nagel has continued its dynamic performance from the first half of the year into the third quarter and achieved a very positive result for the first nine months of 2018. The performance in the business units seafreight, airfreight and overland is remarkable. In contract logistics, results are as expected negatively affected by investments in the operation platform, which have been realised according to plan in this year. Based on the very good results of the first nine months, we expect this year to close successfully.”

Seafreight
In seafreight, Kuehne + Nagel increased the volume by 8.8 percent and thus grew twice as fast as market. In the first nine months of the year the company shipped 3.519 million standard containers (TEU), 284,000 more than in the same period of the previous year. A substantial amount of new business was gained with digital end-to-end solutions, with high demand on the market for the two digital platforms KN ESP and SeaExplorer, launched in 2018. EBIT for the first nine months of the year was up 5.2 percent at CHF 324 million with stable margins. The conversion rate of 29.0 percent remains a leading mark in the industry.

Airfreight
Airfreight stayed en route for success in the first nine months of 2018 and continued its strong performance from the previous quarters. Tonnage increased by 16.0 percent to 1,302 million tonnes, therewith well above market growth with major contributions from industry-specific end-to-end solutions. With the recent acquisition of Panatlantic’s business, a perishables airfreight specialist in Ecuador, Kuehne + Nagel continues to strengthen its network in this segment after successfully completing the integration of CFI Commodity Forwarders, the leading perishables provider in the USA. EBIT was up 19.4 percent against the same period of the previous year at CHF 271 million. The conversion rate remained high at 30.3 percent.

Overland
Success continued in Kuehne + Nagel overland with a net turnover growth of 16.2 percent compared with the same period of the previous year whilst gross profit increased by 15.6 percent. EBIT improved 58.3 percent over the previous year to CHF 57 million. This strong performance was driven by the US intermodal business, benefiting from the increase in oil prices, and dynamic business development in Europe, particularly in Germany and the UK.

Contract logistics
Growth in contract logistics was well above the market with net turnover increasing by 10.6 percent and gross profit by 10.7 percent. Business performance developed well in North America, Asia and Germany and with e-commerce fulfilment solutions. Results are negatively affected by investments in the operation platform, which have been made according to plan in this year. At CHF 93 million EBIT was as expected below the previous year’s level. Key milestones in contract logistics were reached with the successful launch of a new digital warehouse management system and leading digital end-to-end solutions. Furthermore, Kuehne + Nagel agreed on the acquisition of a Chinese automotive logistics group and a local Indonesian logistics company.

Indonesia as one of the Asian key development markets for Kuehne + Nagel’s contract logistics

Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel International AG, responsible for contract logistics, says: “Indonesia is arguably the most important internet market in South East Asia in terms of its sheer size, emerging middle class and digitally savvy population. With this acquisition we can leverage our global eCommerce strategy. At the same time it allows us to strengthen our Contract Logistics footprint in Asia and our position as a leading logistics service provider. The tightened domestic network will further enhance our value proposition of providing fully integrated end-to-end logistics solutions to our customers across Indonesia.”

The expansion of Kuehne + Nagel’s warehousing and distribution capabilities in Indonesia where imports and exports account for close to US$ 300 billion annually has been a strategic focus for the company. The country’s burgeoning middle class is driving increased purchasing power making it an important consumer market for many companies.

“Kuehne + Nagel started operations in Indonesia in 1992. Over the years, we have become the logistics partner of choice for many blue chip multi-national corporations and local companies. These partnerships are a testament of our expertise and understanding of our customers’ needs, regardless of the size of their company. We are very excited by this acquisition and the additional opportunities that it will create for our business,” said Jens Drewes, President of Kuehne + Nagel South Asia Pacific.

]]>Group,English,Acquisition,Contract Logistics,Investor NewsMon, 01 Oct 2018 17:30:00 +0200https://content.presspage.com/uploads/1918/500_kuehnenagelstrengthensfootprintinindonesiathroughstrategicacquisition-final.jpg?26182Sustainability strategy confirmed: Kuehne + Nagel included into SXI Switzerland Sustainability 25 Indexhttps://newsroom.kuehne-nagel.com/sustainability-strategy-confirmed--kuehne--nagel-included-into-sxi-switzerland-sustainability-25-index/
https://newsroom.kuehne-nagel.com/sustainability-strategy-confirmed--kuehne--nagel-included-into-sxi-switzerland-sustainability-25-index/Kuehne + Nagel International AGSchindellegi / CH, September 24, 2018 – Today, Kuehne + Nagel, one of the world’s leading logistics companies, was included into the SIX Switzerland Sustainability 25 Index, the most important sustainability index in Switzerland. It lists those 25 stocks of the SMI Expanded Index with the best sustainability scores. To measure this, it combines a set of about 90 core and industry-specific indicators.
]]>

Most important sustainability index in Switzerland

Sustainability as an integral part of Kuehne + Nagel’s corporate policy

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: „We are firmly convinced that sustainable behavior lays the foundation for economic success. Sustainability is therefore since long an integral part of our business activities. We continuously monitor and evaluate the economic, social and ecological impacts of our activities. The admission to the SXI Switzerland Sustainability 25 Index is both a confirmation and an incentive for us.“

Kuehne + Nagel’s sustainability strategy aims at making transport and warehousing activities as efficient as possible and avoiding unnecessary transportations. By deploying innovative technologies, big data and predictive analytics Kuehne + Nagel further optimises the global supply chains of the customers, thus making them more sustainable. With tailor-made solutions, Kuehne + Nagel supports the customers in achieving their own sustainability goals. In May 2017, the company was the first logistics provider to disclose the associated carbon dioxide emissions on all seafreight invoices. This allows customers to monitor the CO2 emissions and reduce the environmental impact of their transport chains.

]]>Sustainability,Investor News,Investor Relations,LanguageMon, 24 Sep 2018 17:30:00 +0200https://content.presspage.com/uploads/1918/500_greenlogistics.jpg?10000Kuehne + Nagel establishes one European regionhttps://newsroom.kuehne-nagel.com/kuehne--nagel-establishes-one-european-region/
https://newsroom.kuehne-nagel.com/kuehne--nagel-establishes-one-european-region/Kuehne + Nagel GroupSchindellegi / CH, August 30,2018 –In order to further increase the growth momentum, Kuehne + Nagel will establish an integrated region Europe as of January 1, 2019.
]]>Under the roof of the region Europe with its head office in Hamburg, Kuehne + Nagel will consolidate the management for all European countries. Dr. Hansjörg Rodi, who has been responsible for the Central and Eastern European region and Managing Director for Germany since October 2016, will lead the region Europe.

The responsibility for running the German organisation will be handed over to Mr. Holger Ketz, currently head of airfreight in the Central and Eastern European region. The whole management for Germany will be located in Bremen as of January 1, 2019.

Dr. Detlef Trefzger, CEO Kuehne + Nagel International AG: “The formation of a European Region is an important step in the development of the whole Kuehne + Nagel Group, enabling us to manage our business even more efficiently and customer-oriented. Furthermore, we are pleased that Kuehne + Nagel Germany will have its future head office in Bremen, where Kuehne + Nagel was founded in 1890.”

Enlargement of the contract logistics footprint for the automotive industry in China by almost 70 per cent

Important step to further accelerate the growth in China’s automotive logistics market

Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel International AG, responsible for Contract Logistics: “Contract logistics for the automotive industry is a strategic focus area for Kuehne + Nagel globally and especially in China, the biggest automotive market. The joint venture confirms Kuehne + Nagel’s position as a leading international provider of automotive logistics in China. Following the recent launch of our digital platform for e-fulfilment centres in China this investment further strengthens our presence in Asia.“

In recent years, Kuehne + Nagel has been developing a strong automotive footprint in the country by organically expanding the partnership with premium European brands. The company will now enlarge this footprint by almost seventy per cent serving major Chinese brands and Tier 1 suppliers.

Jiang Jun, Sincero’s Chairman of the Board: “Establishing the joint venture with Kuehne + Nagel is a strategic move to comply with the irreversible globalisation trend of economics and competitive landscape of the automobile logistics industry, thereby to complement each other's strength in global network and local expertise.”

Both parties agreed not to disclose the purchase price. The joint venture is subject to customary closing conditions and to clearance by the competent merger control authorities.

]]>Schindellegi / CH, July 19, 2018 – In the first six months, the Kuehne + Nagel Group recorded strong volume growth and a significant increase in EBIT. The EBIT-to-gross-profit ratio (conversion rate) was maintained at a high level.

Kuehne + Nagel Group

1st half-year 2018

1st half-year 2017

Variance

CHF million

Net turnover

10,066

8,815

+14.2%

Gross profit

3,806

3,377

+12.7%

Operational result (EBITDA)

608

554

+9.7%

EBIT

501

452

+10.8%

Earnings for the period

390

356

+9.6%

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “Kuehne + Nagel remains en route for success in the first half of 2018. We achieved strong volume growth across all business units. This growth combined with active cost management delivered a significant improvement in results confirming the consistency of the implementation of our business strategy. Our high level of industry-specific competence and our digital solutions are key factors here. We monitor the volatile markets and geopolitical developments very closely. Despite this market environment we are confident and ambitious as we enter the second half of the year.”

Seafreight
With momentum increasing in the second quarter, Kuehne + Nagel improved seafreight volumes by 8.1 per cent and thus grew considerably faster than the overall market. In the first half of the year 2.289 million standard containers (TEU) were handled, 172,000 more than in the same period of the previous year. The company gained significant new business, mainly with its integrated digital solutions; growth drivers were full-container-load shipments (FCL) and Project, Oil & Gas, Marine Logistics. EBIT for the first half of the year was up 6.1 per cent at CHF 210 million with overall margins stabilising. The conversion rate amounted to 28.6 per cent, a leading figure in the industry.

Airfreight
Airfreight remained successful in the first half of the year and continued its strong performance from the previous quarters. Tonnage increased by 18.1 per cent to 863,000 tons. Industry-specific solutions made a particularly important contribution here. Compared to the previous year, EBIT increased by 20.5 per cent to CHF 182 million. A further increase was also recorded in the conversion rate which with 31.0 per cent is at a high level.

Overland
Kuehne + Nagel's overland transport continued to increase in all business areas. Net turnover rose by 17.7 per cent and gross profit by 16.5 per cent. Dynamic growth was achieved in the European and North American trade lanes. Once again, the drivers behind this growth were industry-specific solutions, for example in the pharmaceutical industry and in e-commerce fulfilment. Compared to the previous year, EBIT improved by 48.3 per cent to CHF 43 million.

Contract Logistics
Net turnover in contract logistics increased by 12.2 per cent and gross profit by 11.3 per cent. New business based on scalable and tailored logistics solutions, particulary in e-commerce fulfilment, made a major contribution to this. Due to investments in the further development of the business model as well as the launch of a warehouse management system the EBIT was in line with expectations at CHF 66 million down on the previous year.

Dr. Jörg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG: “We demonstrated our performance strength yet again in the first half of 2018 and have established a solid basis for the second half of the year. Kuehne + Nagel’s agility and efficiency make us confident that the positive development of the company will continue.”

Shareholders approved the status report, the financial statements and the consolidated financial statements for the 2017 business year and followed the Board of Director’s proposal of a dividend of CHF 5.75 gross per share. Payout is scheduled from May 15, 2018 onwards. Additionally, the Annual General Meeting granted discharge to the Board of Directors and the Management Board for the 2017 business year.

Chairman of the Board of Directors
With an overwhelming majority of votes Dr. Joerg Wolle was re-elected as Chairman of the Board of Directors for the above mentioned term.

Compensation Committee
Shareholders followed the Board of Directors’ recommendation to re-elect Karl Gernandt, Klaus-Michael Kuehne and Hans Lerch to the Compensation Committee for another one-year term until completion of the next Annual General Meeting.

Independent Proxy / Statutory Auditor
Kurt Gubler, Investarit AG, Zurich, was confirmed as independent proxy; the mandate of Ernst & Young AG as Statutory Auditor for the year 2018 was also approved by the Annual General Meeting.

Maintenance of Authorized Share Capital
(Change of Articles of Association)
Shareholders approved the maintenance of the authorized share capital until 8. Mai 2020, including the revision of Article 3.3 (1) of the Articles of Association.

Remuneration Report

In a consultative vote the shareholders endorsed the 2017 Remuneration Report.

Votes on Remuneration

The total maximum amount of remuneration for the members of the Board of Directors was prospectively approved according to the legal requirements, covering the period until the end of the next Annual General Meeting. In a separate vote, shareholders confirmed the total maximum amount of remuneration for the Management Board, covering the business year 2019.

]]>Schindellegi / CH, April 24, 2018 – The Kuehne + Nagel Group recorded a successful start into 2018 with considerable increases in EBIT and earnings for the period. The company thus confirmed the growth momentum of the last two quarters 2017 in the first three months of the current business year.

Kuehne + Nagel Group

1st quarter 2018

1st quarter 2017

Variance

CHF million

Net turnover

4,862

4,299

+13.1%

Gross profit

1,843

1,648

+11.8%

Operational result (EBITDA)

289

257

+12.5%

EBIT

236

209

+12.9%

Earnings for the period

184

165

+11.5%

Seafreight
In a challenging market environment, Kuehne + Nagel increased volumes by 5.0 per cent, recording market share gains in specific customer groups. In the first quarter, the company handled 1.079 million (TEU), some 50,000 more than in the previous year’s period. Volume growth was only held back by the decline in exports of recycling material to China following changes to import terms. With rapid growth in intra-Asian transport operations and exports from Asia, margins overall increased slightly. EBIT grew by 4.3 per cent to CHF 97 million, with EBIT- to-gross-profit ratio (conversion rate) at an industry-leading level of 27.2 per cent.

Airfreight
Airfreight continued to build on its previous year’s outstanding performance, with solution-oriented, industry-specific offerings. Tonnage increased once again by more than 20 per cent to 422,000 tonnes, including the successful integration of two acquisitions. Particularly strong growth was recorded for exports from North America. EBIT rose by 12.5 per cent from the already very high level of the previous year, reaching CHF 81 million. The conversion rate remained high at 28.6 per cent due to effective cost controls and the further digitalisation of internal processes.

Overland
Kuehne + Nagel's overland business continues to deliver results on growth track. Net turnover increased by 16.4 per cent in the first quarter, while gross profit rose by 16.8 per cent. Key factors for this were the intermodal transport in North America which increased compared to the second half of 2017 and the continuing strong business performance in Europe. Once again, the drivers behind this growth were industry-specific solutions, particularly for the pharma industry. EBIT improved by CHF 17 million compared to the previous year’s period.

Contract Logistics
Due to a dynamic business performance, contract logistics grew twice as fast as the market. Double-digit increases in China and South-East Asia were crucial as well as significant business wins, in particular in the area of e-commerce fulfilment. Gross profit increased by 11.3 per cent compared to previous year’s period. The realignment of the production model at a business in the UK coupled with the costs of introducing innovative technologies and new systems led to an EBIT of CHF 34 million slightly down from the previous year.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “We have made a successful start into the business year and achieved clear increases in volume across all business units. Building on this growth combined with further productivity improvements we were able to considerably increase our results in the first quarter. At the start of the new year we implemented two new digital platforms globally, SeaExplorer and KN ESP, addressing specific customer requirements and creating significant efficiency gains. Another important milestone is the opening of two innovation centres where we develop innovative solutions in contract logistics together with customers. We are determined to continue on this path.”

Schindellegi / CH, February 28, 2018 – The Kuehne + Nagel Group increased its growth momentum from quarter to quarter in 2017 and achieved new record highs in turnover, gross profit and earnings for the year.

Dr. Detlef Trefzger, CEO, Kuehne + Nagel International AG: “2017 was another successful year for the Kuehne + Nagel Group. The consistent implementation of our business strategies resulted in strong volume growth and a clear increase in gross profit. Once again, our integrated business model has shown it’s strength: The effects of difficult market conditions in one business unit were more than compensated by increased profitability in the other divisions. With our digital solutions we further increased efficiency and improved customer value at the same time. Highlights from the past business year include the seamless integration of four acquisitions which strengthen our leading position in perishables as well as pharma and healthcare logistics. Our new strategic programme is setting the course for the future success of our Group with technology- and data-based solutions”.

Development of the business units

Seafreight
In seafreight, Kuehne + Nagel increased volumes by 7.5 per cent and further extended its market share. The company handled 4.4 million TEU, about 300,000 more than in the previous year, confirming its leading global position. Kuehne + Nagel realised particularly strong volume increases in the intra-Asian und US trade lanes. Other growth drivers were the reefer container business with a rise in volumes of 25 per cent, and the Less-than-Container Load (LCL) operations, where for the first time over 2 million cubic metres were handled. Consolidation in the container shipping market once again accelerated in 2017. In many trade lanes rate increases occurred, which could only be passed on to the customers partly and with delay, especially in the first two quarters. Kuehne + Nagel’s growth in volume and productivity did not fully compensate for the margin pressure. EBIT declined by 7.0 per cent in comparison to the previous year, whereby the EBIT-to-gross profit margin (conversion rate) was maintained at an industry leading high level with 29.2 per cent.

Airfreight
Airfreight delivered an outstanding performance in 2017. Kuehne + Nagel increased tonnage by 20.4 per cent, growing twice as fast as the overall market, which itself showed the highest increase since 2010 at around 10 per cent. Kuehne + Nagel’s industry-specific airfreight solutions, for example for the pharma and healthcare or the aerospace sectors, generated significant growth. The company strengthened its leading global market position in perishables logistics with the acquisition and integration of two national market leaders in Kenya and the USA. Strong volume growth in combination with strict cost control and higher productivity resulted in an increase in EBIT by 5.0 per cent. With 30.2 per cent, the conversion rate remained at the previous year’s high level.

Overland
The consistent implementation of Kuehne + Nagel’s market strategy in overland led again to excellent results. Net turnover increased by 7.6 per cent and gross profit by 6.4 per cent. EBIT improved by 75.0 per cent compared to the previous year. The high volume increases in groupage, full truckload and intermodal operations as well as the specific services for customers from the pharma and healthcare industry and the e-commerce market contributed to the strong improvement in results.

Contract Logistics
Specialised, scalable end-to-end solutions and data-driven processes across complex supply chains again proved to be key success factors in contract logistics in 2017. Kuehne + Nagel gained significant new business and expanded the scope of services for customers particularly from the automotive, high-tech, aerospace, pharma and healthcare industries and e-commerce. The acquisition and integration of two leading pharma logistics providers in Italy and Turkey increased growth momentum in Kuehne + Nagel’s pharma logistics sector. New record highs were set: Net turnover increased by 7.8 per cent, gross profit by 10.5 per cent and EBIT improved by 9.5 per cent. Kuehne + Nagel has 10.6 million square metres of warehousing and logistics space under management, 600,000 more than in the previous year.

Net Turnover
The Kuehne + Nagel Group achieved a net turnover of CHF 18,594 million in 2017, an increase of 12.5 per cent compared to the previous year. This was due to rate increases in sea and airfreight and strong volume growth across all business units.
Net turnover increased by 14.2 per cent in the Americas, by 12.9 per cent in Asia-Pacific and by 11.8 per cent in EMEA.

Gross Profit
Gross profit, the better performance indicator for a logistics company than turnover, was at CHF 7,023 million, 7.2 per cent higher than in the previous year.
Gross profit improved by 9.1 per cent in the Americas, by 6.8 per centin Asia-Pacific and by 6.8 per cent in EMEA.

EBITDA
Earnings before interest, tax, depreciation, amortisation and impairmentof property, plant and equipment, goodwill and other intangible assets (EBITDA) increased by 3.6 per cent to CHF 1,150 million compared to the previous year.
EMEA generated the largest EBITDA contribution with CHF 675 million (58.7 per cent), followed by the Americas with CHF 246 million (21.4 per cent) and Asia-Pacific with CHF 229 million (19.9 per cent).

EBIT
In 2017, earnings before interest and tax (EBIT) improved by CHF 19 million to CHF 937 million. The Group’s EBIT margin was at 5.0 per cent. EMEA contributed CHF 523 million (55.8 per cent) to the Group's EBIT, followed by the Americas with a contribution of CHF 204 million (21.8 per cent) and Asia-Pacific with CHF 210 million (22.4 per cent).

Dividend
The Board of Directors will propose a dividend per share of CHF 5.75 (previous year: CHF 5.50) to the Annual General Meeting on May 8, 2018.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG: “In a demanding and rapidly changing economic environment the Kuehne + Nagel Group has strengthened its position as a leading logistics provider and improved results. The again favourable development in 2017 demonstrates that it is worthwhile to invest in our company. The dynamic market and competitive situation requests the full attention of the Board of Directors and the Management Board. The performance strength and innovative power of the Kuehne + Nagel Group makes us confident for the 2018 business year.”

Annual Report 2017
Further information on the 2017 full-year result and the annual report 2017 are published on our website.

Seafreight: significant market share gains and slight margin improvement in the third quarter

Airfreight: strong development of volume and earnings

Overland: twice the EBIT compared to the previous year

Contract Logistics: successful business expansion and further improvement of results

Group earnings for the period at CHF 540 million

]]>In the first nine months of 2017, the Kuehne + Nagel Group’s growth momentum accelerated sequentially in the quarters. All business units recorded significant market share gains. Compared to the previous year’s period, net turnover increased by 10.4 per cent to CHF 13,525 million and gross profit by 4.8 per cent to CHF 5,136 million. The operational result (EBITDA) improved by 2.8 per cent to CHF 840 million and earnings for the period by 1.3 per cent to CHF 540 million.

Kuehne + Nagel Group

January to September

2017

2016

CHF million

Net turnover

13,525

12,247

Gross profit

5,136

4,900

Operational result (EBITDA)

840

817

EBIT

685

678

Earnings for the period

540

533

Seafreight
With a volume increase of approximately 8 per cent in the first nine months of the year, Kuehne + Nagel confirmed its ability to achieve strong growth in a still demanding market environment. In total, the Group handled 230,000 TEUs more than in the previous year’s period, whereby the strongest volume increases were realised in all US trades. Kuehne + Nagel also achieved double-digit growth in the Latin America trades. The Group significantly improved its leading market position in the reefer container and LCL (Less-than-Container Load) operations. In the third quarter Kuehne + Nagel improved margins through further automation of internal processes, economies of scale and efficient cost management. The EBIT-to-gross profit margin (conversion rate) was at a high level of 29.2 per cent; EBIT reached CHF 308 million.

Airfreight
In the first nine months of the year, Kuehne + Nagel increased volumes by 19 per cent (+180,000 tons), growing more than twice as fast as the market. A key factor for this positive development was the company’s comprehensive offering of industry-specific airfreight solutions. New business was won in the pharmaceutical, high-tech and automotive industries. Perishables logistics continued to develop very successfully, thus further expanding Kuehne + Nagel’s position as the global market leader in this segment. Trillvane, the Kenyan perishables logistics company acquired in July 2017, has been part of the Kuehne + Nagel Group since September 2017. With strict cost control and productivity increases due to process automation Kuehne + Nagel compensated for margin pressure and maintained the conversion rate with 30.3 percent at previous year’s high level. EBIT improved by 3.2 per cent toCHF 227 million.

Overland
Despite seasonal market fluctuations the successful development of the overland business continued in the third quarter. In the first nine months of 2017, net turnover increased by 5.2 per cent and gross profit by 4.6 per cent compared to the previous year’s period. All regions, in particular Europe and North America, contributed to this improvement. The groupage and full truckload shipments as well as industry-specific services were the key drivers for growth. As a result of the consistent and ongoing process optimisation, EBIT increased from CHF 18 million in the previous year’s period to CHF 36 million.

Contract Logistics
In the first nine months of the year, Kuehne + Nagel won a significant amount of new contracts, with business activities in Asia growing dynamically. The acquisition of two specialised pharma logistics companies in Italy and Turkey, which have now been integrated into the Kuehne + Nagel network, enables a further expansion in pharma logistics. E-commerce fulfilment equally performed very strongly. Gross profit increased by 7.7 per cent, the operational result improved by 14.2 per cent compared to the previous year’s period. EBIT increased by 14.0 per centto CHF 114 million.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “With strong volume growth and active cost management we further improved results in the third quarter in line with our expectations. In seafreight a margin improvement was achieved in the third quarter. The airfreight, overland and contract logistics businesses contributed to significant profitability increases. The business development in the first nine months of 2017 confirms our strategic focus on value-creating solutions and makes us confident to reach our profitability targets we have set ourselves for the full business year.”

]]>Group,Investor Relations,Investor News,EnglishMon, 16 Oct 2017 06:49:10 +0200https://content.presspage.com/uploads/1918/500_kuehnenagelanchor.png?10000Capital Markets Day 2017https://newsroom.kuehne-nagel.com/capital-markets-day-2017/
https://newsroom.kuehne-nagel.com/capital-markets-day-2017/Kuehne + Nagel GroupToday, Kuehne + Nagel is holding its 9th Capital Markets Day in London. Investors, analysts and the broader financial community will be provided with an update on the Group’s direction as well as on major industry trends.
]]>Changing consumer behaviour and the speed of technological developments are transforming traditional go-to-market approaches and logistics operations. Based on its market knowledge, customer proximity, industry experience and operational excellence Kuehne + Nagel sees promising prospects for strong growth resulting from new dynamics in underlying markets.

With “KN+NextGen”, succeeding the “Focus + Excellence” initiatives as of 2018, Kuehne + Nagel will exploit the opportunities offered by digitalisation. Based on its successful business model Kuehne + Nagel’s ambition is to continue to gain substantial market shares in the years to come. In addition, the Group will expand its service offering through new technologies and the creation of data-driven value chain services. Acquisitions have supported the growth initiatives in the past and will be an important option to accelerate the “KN+NextGen” programme.

Kuehne + Nagel will provide a webcast of the presentations ofDr. Detlef Trefzger, CEO, and Markus Blanka-Graff, CFO, which are scheduled from 9.30 hrs to 10.30 hrs GMT.

]]>In the first half year of 2017, the Kuehne + Nagel Group gained market shares in all business units and accelerated its growth momentum during the second quarter. Net turnover increased by 8.2 per cent to CHF 8,815 millioncompared to the previous year’s period and gross profit grew by3.7 per cent to CHF 3,377 million. The operational result (EBITDA) improved by 1.3 per cent to CHF 554 million and with CHF 356 million earnings for the period reached last year’s level.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG:"The result of the first half of 2017 is a clear evidence of our growth-oriented business strategy as well as efficient cost management, which enabled us to counter the ongoing pressure on margins in seafreight and airfreight. The remarkable improvements of results in contract logistics and overland are mainly due to the successful implementation of our market strategies. During the second half of the year, we will continue to focus on volume growth, productivity increases and the scaling of industry-specific solutions."

Seafreight
With a volume increase of 7.7 per cent in seafreight, Kuehne + Nagel grew faster than the market and, in the first half of 2017, handled over 151,000 TEUs more than in the previous year’s period. Kuehne + Nagel gained market shares in all US trades, both import and export. In the Latin American relations and in the reefer container business double-digit growth rates were realised. At the same time, Kuehne + Nagel further increased productivity and cost efficiency. Margins remained under pressure and below the previous year's level, inter alia due to the fierce competitive environment; however, a slight increase compared to the first quarter has been achieved. The EBIT-to-gross profit margin (conversion rate) was at a high level of28.8 per cent, EBIT amounted to CHF 198 million.

Airfreight
In airfreight, volume growth accelerated in the second quarter. Withan over 18 per cent increase in tonnage in the first half of 2017, Kuehne + Nagel grew about double the market. A strong demand for industry-specific airfreight solutions has made a significant contributionto this positive development. New business was gained particularly inthe pharma, aerospace and perishables industries. Strict cost controland productivity increases due to process automation countered the margin pressure and kept the conversion rate stable at 30.6 per cent, reaching previous year’s high level. With CHF 151 million, EBIT improved by 2.7 per cent compared to the previous year.

Overland
In the overland business, volume and earnings developed very positive. During the first six months of 2017, net turnover increased by 3.3 per cent and gross profit by 3.5 per cent, compared to the previous year. Thiswas driven by higher volumes for groupage, full truckload and intermodal shipments mainly in Europe and the USA, and on the other hand, by a strong order intake for industry-specific services. The increase of EBIT from CHF 17 million in the previous year’s period to CHF 29 million inthe first half of the year 2017 reflects the significant improvement of the operational performance.

Contract Logistics
Customer focus, solutions competence and innovative products led to a substantial increase of new business and the expansion of service offering for existing customers around the globe. Compared to the previous year, an additional 540,000 square meters of warehousing and logistics space were added to operations. Gross profit increased by 6.6 per cent and EBITDA by 10.5 per cent. EBIT improved by 5.7 per cent.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG: "The half-year results of 2017 reflect the continuous strength of our Group which makes us confident for its further development despite that seafreight and airfreight markets can be expected to remain demanding and volatile. Kuehne + Nagel remains committed to its proven strategy and continues to invest in growing markets and industry segments. With acquisitions, as the ones announced today, we are ideally complementing our organic growth and strengthen our position in a still fragmented market.”

]]>At today's Annual General Meeting of Kuehne + Nagel International AG, the shareholders present accounted for 83.66 per cent of the voting shares. All proposals were approved by a large majority.

Shareholders approved the situation report, the financial statements and the consolidated financial statements for the 2016 business year and followed the Board of Director’s proposal of a dividend of CHF 5.50 gross per share. Payout is scheduled from May 15, 2017 onwards. Additionally, the Annual General Meeting granted discharge to the Board of Directors and the Management Board for the 2016 business year.

Chairman of the Board of Directors
With an overwhelming majority of votes Dr. Joerg Wolle was re-elected as Chairman of the Board of Directors for the above mentioned term.

Compensation Committee
Shareholders followed the Board of Directors’ recommendation to re-elect Karl Gernandt, Klaus-Michael Kuehne and Hans Lerch to the Compensation Committee for another one-year term until completion of the next Annual General Meeting.

Independent Proxy / Statutory Auditor
Kurt Gubler, Investarit AG, Zurich, was confirmed as independent proxy; the mandate of Ernst & Young AG as Statutory Auditor for the year 2017 was also approved by the Annual General Meeting.

Remuneration Report

In a consultative vote the shareholders endorsed the 2016 Remuneration Report.

Votes on Remuneration

The total maximum amount of remuneration for the members of the Board of Directors was prospectively approved according to the legal requirements, covering the period until the end of the next Annual General Meeting. In a separate vote, shareholders confirmed the total maximum amount of remuneration for the Management Board, covering the business year 2018.

]]>The Kuehne + Nagel Group maintained the growth momentum of the fourth quarter 2016 in the first three months of the current business year. Net turnover increased by 7.2 per cent to CHF 4,299 million and gross profit by 3.5 per cent to CHF 1,648 million, EBITDA at CHF 257 million reached the previous year’s level.

Seafreight
In seafreight Kuehne + Nagel increased volumes by 9 per cent to over 1 million TEU and thus grew more than twice as fast as the overall market. The Group gained significant market shares in almost all trade lanes, particularly in the transatlantic and transpacific relations. Kuehne + Nagel's customer information system, KN Login, proved to be a decisive success factor for winning new business. At the same time, cost efficiency further increased. Margins continued to remain under pressure and thus were under the previous year's level, however, stable compared to the fourth quarter 2016. With 27.6 per cent the EBIT-to-gross profit margin (conversion rate) was at a solid level, EBIT amounted to CHF 93 million.

Airfreight
Kuehne + Nagel’s solution-oriented, industry-specific offering in airfreight, combined with stronger market demand, resulted in a considerable growth in the first quarter 2017: volumes increased by 15.5 per cent to 350,000 tons. Customers rely on Kuehne + Nagel's competence and service quality, whereby strong growth was particularly achieved in the industry sectors pharma and perishables, as well as e-commerce. Effective cost control and digitalisation of the internal processes helped to keep both the conversion rate with 29.9 per cent and the EBIT with CHF 72 million at high levels.

Overland
Kuehne + Nagel's overland business continues to expand. In the first three months of 2017, clearly exceeding market growth, turnover increased by 5.0 per cent compared to the previous year. Higher volumes in the groupage, full truckload and intermodal businesses and the increased demand for industry-specific solutions, particularly for the pharma and the expo & event sectors contributed to the positive development. Continuous process automation supported the improvement of the operational performance resulting in a 75.0 per cent EBIT increase.

Contract Logistics
Growth in contract logistics accelerated through customer focus, solution competence, innovative services and digitalised processes. In the first three months of 2017, net turnover increased by 6.8 per cent. New business was won in the fields of e-commerce and pharma. The acquisition of two specialised pharma logistics companies will generate additional growth. EBIT rose by 12.1 per cent, and the EBIT margin increased from 3.1 per cent in the previous year to 3.3 per cent, whereby it must be noted, that in the first quarter 2016 a positive one-off effect of CHF 8 million was recorded pertaining to a profit of sale of real estate.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “The good result in the first quarter 2017 supports our optimistic outlook for a continued successful business development this year. In seafreight and airfreight we are experiencing strong growth and have gained significant market shares. This increase in volume and productivity as well as cost control mitigated the ongoing pressure on margins. Our strategic approach for overland and contract logistics led to a further improvement of results. We have established a good basis for the second half of 2017.”

]]>In 2016, the Kuehne + Nagel Group once again achieved profitable growth leading to new record highs in both earnings for the year with CHF 720 million and EBIT margin at 5.6 per cent.

Dr. Detlef Trefzger, CEO, Kuehne + Nagel International AG: “We set ourselves ambitious targets for 2016 and we are pleased of having achieved them and to report a new record result. In a market environment characterised by multiple challenges, we were successful with our focus on customer requirements, our solution-oriented approach and our balanced service portfolio. In all business units we gained market shares while further increasing overall profitability. Thanks to our portfolio of scalable industry-specific end-to-end solutions and our operational efficiency, we are well positioned for continued profitable growth, which we will accelerate by selected acquisitions.”

Development of the business unitsSeafreightIn 2016, the number of TEU handled by Kuehne + Nagel exceeded the 4 million mark for the first time. With a volume increase of 6.1 per cent, the Group grew twice as fast as the market. The Less-than-Container Load (LCL) volume increase and the successful development of the reefer container business are to be emphasised. Renowned customers from the pharmaceutical and healthcare industry rely on Kuehne + Nagel when it comes to handling their temperature-sensitive products. Kuehne + Nagel was not able to fully avoid the effects of the ongoing shipping crisis, which became apparent in 2016 above all in terms of historically low freight rates and pressure on margins, as well as the weak development in the oil and gas industry. Despite productivity increases, EBIT declined by 3.1 per cent in comparison to the previous year, whereby the EBIT-to-gross profit margin (conversion rate) could be maintained at an industry leading high level with 31.4 per cent.

AirfreightAirfreight delivered a very pleasing performance. In a volatile international airfreight market with growth only picking up in the fourth quarter, Kuehne + Nagel increased tonnage by 4.3 per cent to 1,304,000 tons, therewith expanding its position as number 2 among the global airfreight providers. Its focus on industry-specific airfreight solutions such as KN EngineChain, a specialised service package for production and spare parts logistics as well as the maintenance of aircraft engines, was a key success factor. Kuehne + Nagel's leading solution for temperature-sensitive goods, pharmaceutical or perishable products, generated significant new business. The improved margins and operational efficiency led to further growth in profitability. The conversion rate increased from 29.3 per cent in the previous year to 30.9 per cent. The EBIT improved by 12.5 per cent in comparison to the previous year.

OverlandKuehne + Nagel increased net turnover in 2016 by 11.9 per cent due to the systematic expansion of the overland activities within and outside Europe. Following the integration of the United States overland transport provider ReTrans, which has been part of the Group since 2015, Kuehne + Nagel customers in North America benefit from intermodal transport services. Overland activities were increasingly integrated into industry solutions provided by the other business units. The increase in gross profit by 7.3 per cent as well as the improvement of the operational performance resulted in a significantly higher EBIT.

Contract LogisticsFocusing on specialised end-to-end solutions for industries such as automotive, e-commerce, high-tech, consumer goods, aerospace, pharmaceuticals and healthcare again resulted in new business wins with a subsequent rise in net turnover by 5.7 per cent in constant currencies. In 2016, more than 100 new logistics projects were implemented for customers; the Group now managing more than 10 million square metres of warehousing and logistics space. The attractiveness of the service portfolio and the quality of implementation as well as continuous process improvement led to a considerable EBIT increase of 23.5 per cent.

Net TurnoverAfter customs, duties and taxes, the Kuehne + Nagel Group achieved a net turnover of CHF 16,525 million in 2016, which corresponds to a decline by 1.2 per cent in comparison to the previous year. This was due to historically low rates in sea and airfreight as well as negative foreign currency effects. While net turnover increased by 1.7 per cent in Asia-Pacific, it declined by 3.2 per cent in the Americas and by 1.0 per cent in EMEA.

Gross ProfitGross profit, which is the better performance indicator for a logistics company than turnover, was with CHF 6,550 million 4.8 per cent higher than in the previous year. Negative currency effects had an impact of1.4 per cent. Gross profit improved by 8.1 per cent in the Americas, by 5.9 per cent in Asia-Pacific and by 3.8 per cent in EMEA.

EBITDAEarnings before interest, tax, depreciation, amortisation and impairment of property, plant and equipment, goodwill and other intangible assets (EBITDA) increased by 6.6 per cent to CHF 1,110 million compared to the previous year. Currency effects had a negative impact of 0.8 per cent. EMEA generated the largest EBITDA contribution with CHF 647 million (58.3 per cent), followed by the Americas with CHF 245 million (22.1 per cent) and Asia-Pacific with CHF 218 million (19.6 per cent).

EBITIn 2016, earnings before interest and tax (EBIT) improved by CHF 68 million to CHF 918 million. The rise is primarily due to the improvement in profitability. Foreign currency effects had a negative impact of 0.8 per cent.EMEA contributed CHF 509 million (55.5 per cent) to the Group's EBIT, followed by the Americas with a contribution of CHF 207 million (22.5 per cent) and Asia-Pacific with CHF 202 million (22.0 per cent). The EBIT margin of the Group amounted to 5.6 per cent.

DividendThe Board of Directors will propose a 10 per cent higher dividend of CHF 5.50 (previous year: CHF 5.00) to the Annual General Meeting on May 9, 2017.Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG: “The Kuehne + Nagel Group is in excellent shape and in a strong competitive position. Based on the 2016 full-year results, the company can look forward to the future with confidence. Competence, professionalism and the high level of commitment among all employees worldwide, a proven long-term strategy, efficiency and effective cost control are the drivers for success. The Board of Directors thanks the Management Board for the very good performance.Both, the Management Board and the Board of Directors will face the challenging market development and competitive environment with focus and full commitment.”

]]>Investor Relations,Group,Investor NewsWed, 01 Mar 2017 06:45:00 +0100https://content.presspage.com/uploads/1918/500_kuehnenagelanchor.png?10000Success continueshttps://newsroom.kuehne-nagel.com/success-continues/
https://newsroom.kuehne-nagel.com/success-continues/Kuehne + Nagel GroupIn the first nine months of 2016 the Kuehne + Nagel Group increased gross profit by 6.3 per cent to CHF 4,900 million while net turnover slightly decreased. The operational result (EBITDA) improved by 5.1 per cent to CHF 817 million. Earnings for the period increased by 4.1 per cent to CHF 533 million compared to the previous year’s period.
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Kuehne + Nagel Group

January to September 2016

January to September 2015

CHF million

Net turnover

12,247

12,426

Gross profit

4,900

4,609

Operational result (EBITDA)

817

777

EBIT

678

217

Earnings for the period

640

512

Seafreight
With a 4.5 per cent increase in container volumes in the third quarter 2016, Kuehne + Nagel again outperformed market growth of one to two per cent. Beside material volume increases in the transpacific and intra-Asian trade lanes, reefer transports in particular contributed to the favourable development. The low rate levels in most of the trade lanes continued and the impact of the further consolidation of the shipping industry increased pressure on the margins. Gross profit per TEU decreased by 4.4 per cent in the third quarter. Compared to the first nine months of the previous year, Kuehne + Nagel expanded its container volume by 5.4 per cent. Gross profit rose by 4.3 per cent and the EBIT-to-gross profit margin remained high at 31.8 per cent (previous year: 32.7 per cent). EBIT improved by 1.5 per cent to CHF 340 million.

Airfreight
The global airfreight market remained tense in the third quarter and pressure on margins continued due to shrinking demand and further capacity increases. Against this trend, Kuehne + Nagel grew its tonnage by 3.8 per cent and gross profit per 100 kilos by 1.4 per cent, mainly due to further scaling its industry-specific solutions. Compared to the first nine months of the previous year, Kuehne + Nagel increased its volume by 2.2 per cent. Gross profit rose by 6.4 per cent and the EBIT-to-gross profit margin remained at last year’s high level at 30.7 per cent (2015: 30.0 per cent). EBIT improved by 8.9 per cent to CHF 220 million.

Overland
In the overland business unit, growth momentum in turnover and gross profit from the previous quarters continued. Business developed particularly well in Europe, whilst slowing in the USA due to the development of transport cost. Compared to the first nine months of the previous year, net turnover increased by 16.9 per cent and gross profit by 9.4 per cent. EBIT improved by 5.9 per cent to CHF 18 million.

Contract Logistics
New contracts have been won through Kuehne + Nagel’s ability to offer scalable end-to-end solutions to customers of the automotive, high-tech, pharmaceutical and consumer goods industries. The successful implementation of new projects continued, leading to an increase of 4.4 per cent in gross profit in the third quarter. Compared to the first nine months of the previous year, net turnover rose by 5.2 per cent, outperforming market growth. Gross profit increased by 6.4 per cent compared to the previous year and EBIT improved from CHF 86 to CHF 100 million.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “Cautious consumer behaviour in parts of the EU and the USA resulted in lower export volumes in Asia. In addition, the tougher situation in the shipping industry increased pressure on seafreight margins. By maintaining our Group’s focus on industry-specific logistics solutions and high-quality services, we succeeded in achieving growth and stable results despite the demanding market environment. We are confident about the business development in the fourth quarter of 2016.”

]]>Investor Relations,Group,Investor NewsTue, 18 Oct 2016 06:45:00 +0200https://content.presspage.com/uploads/1918/500_kuehnenagelanchor.png?10000Leveraging volume for profithttps://newsroom.kuehne-nagel.com/leveraging-volume-for-profit/
https://newsroom.kuehne-nagel.com/leveraging-volume-for-profit/Kuehne + Nagel GroupThe Kuehne + Nagel Group was able to increase gross profit by 8 per cent to CHF 3,257 million in the first six months of 2016 while net turnover slightly decreased. The operating result (EBITDA) grew by 10 per cent to CHF 547 million. Earnings for the period improved by 9 per cent to CHF 356 million compared to the previous year’s period.
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Kuehne + Nagel Group

First half-year 2016

First half-year 2015

CHF million

Net turnover

8,147

8,225

Gross profit

3,257

3,018

Operational result (EBITDA)

547

497

EBIT

455

410

Earnings for the period

356

326

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “The first half of 2016 has been shaped by different regional economic development trends. Global trade showed a lack of growth momentum. Our strategy to focus on organic growth and gaining market shares by offering industry-specific solutions once again led to increases in volumes and results. Our Group delivered a strong performance and has significantly improved gross profit, and therewith increased profit.”

Seafreight
In seafreight, Kuehne + Nagel continued to grow and, for the first time, succeeded in handling over one million TEU in one quarter. Compared to the first six month of the previous year, the Group increased its container volume by 5.8 per cent. This growth well above market average was primarily a result of the larger volumes in the export business from Asia to Europe and the US. The LCL and reefer container businesses performed well. The EBIT-to-gross profit margin improved from 30.8 per cent in the first half of 2015 to 31.3 per cent and EBIT by 8.3 per cent to CHF 221 million.

Airfreight
In the global airfreight market shrinking demand and excess capacity resulted in margin pressure. In this challenging environment, Kuehne + Nagel managed to increase its tonnage by 2.9 per cent in the second quarter of 2016. This was mainly due to the expansion of customer-specific services and industry solutions. Strong export business in Asia, the Middle East and Africa contributed equally to this development. Compared to the first six months of the previous year, Kuehne + Nagel increased tonnage by 1.3 per cent. The sustainable profitability is reflected in the EBIT-to-gross profit margin, which at 30.8 per cent was slightly above the previous year’s level. EBIT improved by 8.1 per cent to CHF 147 million.

Overland
Substantial growth in net turnover and gross profit was achieved in the overland business unit in the second quarter of 2016. The fully integrated US-based ReTrans Group and the European business contributed considerably to the positive performance. Compared to the first six months of the previous year, net turnover improved by 22.6 per cent and gross profit by 12.6 per cent. EBIT increased from CHF 14 million to CHF 17 million.

Contract Logistics
The successful implementation of new businesses accelerated in the second quarter of 2016. As a result, gross profit increased by 9.7 per cent in this period versus 5.1 per cent in the first quarter of 2016. Compared to the first six months of the previous year, the net turnover increase of 6.9 per cent outperformed market growth. Gross profit improved by 7.4 per cent compared to the previous year and EBIT from CHF 56 to CHF 70 million.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG: “In the second quarter, the Kuehne + Nagel Group improved its performance and managed to expand market shares in a heterogeneous economic environment. Based on its successful strategic focus, we are confident that we can continue the momentum in volume and profit into the second half of the year from today’s perspective.”

]]>Investor Relations,Group,Investor NewsTue, 19 Jul 2016 06:45:00 +0200https://content.presspage.com/uploads/1918/500_kuehnenagelanchor.png?10000Positive momentum carried into 2016https://newsroom.kuehne-nagel.com/positive-momentum-carried-into-2016/
https://newsroom.kuehne-nagel.com/positive-momentum-carried-into-2016/Kuehne + Nagel GroupIn the first three months of the year, the Kuehne + Nagel Group continued the positive development of the last two quarters of 2015. While net turnover slightly declined, gross profit increased by 6.4 per cent to CHF 1,593 million. The operational result (EBITDA) grew by 11.2 per cent to CHF 259 million; earnings for the period improved by 10.5 per cent to CHF 169 million compared to the previous year’s period.
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Kuehne + Nagel Group

1st quarter 2016

1st quarter 2015

CHF million

Net turnover

4,010

4,096

Gross profit

1,593

1,497

Operational result (EBITDA)

259

233

EBIT

217

190

Earnings for the period

169

153

Seafreight
In seafreight, Kuehne + Nagel remained on course for growth and increased its transported volumes in numerous relations. Overall, the Group succeeded to expand its container volume by 6 per cent, whilst the international seafreight market grew by around 1 per cent only. At the same time, Kuehne + Nagel managed to improve its profitability. Gross profit per TEU rose by 1.4 per cent and the EBIT-to-gross profit margin (conversion rate) from 29.0 per cent in the previous year to 30.7 per cent. EBIT increased by 13.8 per cent.

Airfreight
In the global airfreight market no significant positive growth stimuli were recorded; as a result, volumes declined towards the end of the quarter. In the previous year’s period, volumes were additionally increased by a temporary shift of goods from sea to airfreight due to the harbour strike on the US West Coast. Kuehne + Nagel counteracted the unfavourable volume development in North and South America with strong export business in Asia, the Middle East and Africa, and thus, managed to keep overall tonnage stable at the previous year's level. The sustainable profitability in this business unit is reflected in the conversion rate, which rose from 30.8 per cent in the first quarter of 2015 to 31.1 per cent. EBIT improved by 7.4 per cent.

Overland
During the first three months of 2016, net turnover increased by 18.4 per cent compared to the previous year, thus significantly exceeding market growth. On the one hand, this can be attributed to the good performance of the American ReTrans Group, which was acquired in 2015, and on the other, to the solid development of activities in the European overland business. However, growth ambitions in several emerging markets could not be achieved in the first quarter of 2016 due to the economic situation. EBIT remained stable at CHF 4 million.

Contract Logistics
In the first quarter 2016, substantial new business was implemented in Asia, Europe and especially in the USA. Compared to the previous year’s period, net turnover rose by 6.4 per cent, clearly exceeding market average. Due to operational improvements and the stabilisation of drinks logistics in the UK, EBIT increased from CHF 24 million in the previous year to CHF 33 million.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “The result of the first quarter 2016 confirms the successful implementation of our Group strategy. We consider our market proximity and our understanding of current and future customer requirements as a solid basis for the further, positive development of our business.”

The report of the globally operating logistics group is accessible online and available for download on the Kuehne + Nagel website.

]]>Investor Relations,Group,Investor NewsFri, 08 Apr 2016 06:45:00 +0200https://content.presspage.com/uploads/1918/500_kuehnenagelanchor.png?10000Continued Successhttps://newsroom.kuehne-nagel.com/continued-success/
https://newsroom.kuehne-nagel.com/continued-success/Kuehne + Nagel GroupFor the globally operating Kuehne + Nagel Group 2015 was once again a successful year. Profitability further increased leading to a new record result in earnings for the year. Due to the strong Swiss Franc, net turnover of CHF 16,731 million was 4.4 per cent below the previous year, whereas gross profit remained at last year’s level. The operational result (EBITDA) increased by 3.6 per cent to CHF 1,041 million. The EBIT margin amounted to 5.1 per cent and exceeded the target ahead of time. Earnings for the year improved by 5.4 per cent (in constant currencies by 12.7 per cent) to CHF 679 million.

For the 2015 business year, the Board of Directors will propose a dividend of CHF 5.00 per share to the Annual General Meeting.
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Kuehne + Nagel Group

2015

2014

CHF million

Net turnover

20,283

21,291

Gross profit

16,731

17,501

Operational result (EBITDA)

1,041

1,005

EBIT

850

819

Earnings for the period

679

644

Kuehne + Nagel Group

2015

2014

Dividend per share in CHF

5.00 *

4.00

Anniversary dividend per share in CHF

3.00

* proposal to the Annual General Meeting on May 3, 2016

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “We are proud that in a challenging environment we were able to further increase profitability and once again achieve a new record result. This positive performance was driven by both the effectiveness of our efficiency pro-grammes and the successful implementation of strategic initiatives. It is our customer proximity and understanding of future customer requirements, that enables us to innovatively expand our service portfolio in line with the market. This allowed us to set the course for the Group’s future success.”

Development of the business unitsSeafreight
In an international seafreight market characterised by highly volatile rates and weak growth, Kuehne + Nagel focused on profitable business. In the first half of the year this resulted in a volume decline, which was then compensated in the second half by profitable volume increases in the North American and intra-Asian trade lanes. Whereas the growth in European exports stagnated due to regional differences in demand, Kuehne + Nagel clearly increased volumes in trades to and from North and South America. With regard to specialised solutions such as reefer container and LCL (Less-than-Container-Load), Kuehne + Nagel gained further market share and strengthened its leading position. In total, the company handled 3.8 million TEU, the same quantity as the previous year but with improved profitability: gross profit per TEU increased by 5.2 per cent and the EBIT-to-gross profit margin (conversion rate) rose from 30.3 per cent to an impressive 33.2 per cent. EBIT increased by 15.3 per cent compared to the previous year.

Airfreight
In airfreight, Kuehne + Nagel remained successfully on course in a stagnant to slightly declining global market. The company increased its tonnage by 4.7 per cent to 1,250,000 tonnes, thereby reaffirming its position as the second largest global airfreight forwarder. A key factor
in the good performance was the focus on industry-specific airfreight solutions, which led to significant business wins in the pharmaceutical, aerospace and perishables sectors. KN FreightNet, the innovative online portal, proved to be an effective new sales channel. Customers worldwide can receive instant quotes for airfreight services, place bookings and track shipments. The enhanced profitability in this business unit is reflected in the conversion rate, which increased from 27.0 per cent in the previous year to 29.3 per cent; EBIT improved by 11.3 per cent.

Overland
The operational performance in overland remained stable despite the challenging market situation in Europe. The groupage activities in Germany, France and the UK were successfully expanded. The new workflow concept for less than truckload (LTL) and full truckload (FTL) shipments contributed to the pleasing development of this business unit. Kuehne + Nagel’s acquisition of ReTrans, a U.S.-based provider of multimodal transportation management solutions, in August 2015 marked an important step in the expansion of activities outside Europe. A notable amount of new business was already generated in cooperation with the North American Kuehne + Nagel organisation in the fourth quarter. The overall positive development was impacted by an antitrust fine imposed by the French competition authority on twenty French parcel service providers, including a CHF 34 million fine for the Alloin Group, a French transport company, which Kuehne + Nagel took over in 2009. Thereof, CHF 33 million are attributable to the time before the acquisition of the Alloin Group. Kuehne + Nagel dissociates itself from such business practises and has a comprehensive compliance programme in place, which is continuously improving. The EBIT decrease from CHF 30 million in the previous year to CHF 7 million is mainly owed to the antitrust fine. Kuehne + Nagel lodged an appeal against the French competition authority’s decision.

Contract Logistics
Kuehne + Nagel’s industry-specific end-to-end solutions met with high demand in the market, as confirmed by the new business wins in 2015 with an additional warehousing space of some 860,000 m2. The three strategic initiatives – focused growth, continual process improvement and Master Location Plan – prove to be effective. In the year under review, Kuehne + Nagel managed a total of over 9.5 million m2 of warehouse and logistics space for its customers worldwide. At the same time, the idle space was reduced from 4.2 per cent to 3.5 per cent. Net turnover from contract logistics saw a currency-adjusted increase of 5.5 per cent, placing it above the market average. Nevertheless, negative currency effects, which particularly affected this division, and the drinks logistics business in the UK, significantly impacted the result. EBIT decreased from CHF 153 million in the previous year to CHF 119 million.

Net Turnover
After customs, duties and taxes the Kuehne + Nagel Group achieved a net turnover of CHF 16,731 million in 2015, which represents a decrease of 4.4 per cent compared to the previous year. Negative currency effects impacted net turnover by 8.0 per cent. While net turnover in Asia Pacific remained stable at the previous year’s level, in the Americas it rose by 9.2 per cent. EMEA recorded a decrease by 9.6 per cent, mainly as a result of the strong Swiss Franc against the Euro.

Gross Profit
Gross profit, which is the better performance indicator than turnover for a logistics company, is with CHF 6,251 million in 2015 slightly below (by 0,6 per cent) the previous year. Negative currency effects had an impact of 8.6 per cent. In the Americas gross profit increased by 14.0 per cent and in Asia Pacific by 10.9 per cent. In EMEA however, the strong Swiss Franc resulted in a decline by 5.1 per cent.

EBITDA
Earnings before interest, tax, depreciation, amortisation and impairment of property, plant and equipment, goodwill and other intangible assets (EBITDA) increased by 3.6 per cent to CHF 1,041 million compared to the previous year; negative currency effects had an impact of 7.8 per cent. EMEA generated the largest EBITDA contribution with CHF 580 million (55.7 per cent) followed by the Americas with CHF 231 million (22.2 per cent) and Asia Pacific with CHF 230 million (22.1 per cent).

EBIT
In 2015, earnings before interest and tax (EBIT) improved by CHF 31 million to CHF 850 million, whereas foreign currency effects impacted negatively by 7.1 per cent. The increase was mainly due to a further improvement in profitability. EBIT in the Americas increased by CHF 44 million (28.2 per cent) and in Asia Pacific by CHF 29 million (15.7 per cent). In EMEA, however, EBIT decreased by CHF 42 million (8.8 per cent). The EBIT margin amounted to 5.1 per cent and exceeded the target ahead of time.

Dividend
The Board of Directors will propose to the Annual General Meeting on May 3, 2016, the distribution of a dividend of CHF 5.00 per share (previous year: CHF 4.00 per share and CHF 3.00 anniversary dividend per share).

Karl Gernandt, Chairman of the Board of Directors of Kuehne + Nagel International AG: “The result in the anniversary year confirmed that our company is able to substantially improve even in a volatile environment. Our structures and processes are flexible enough to respond quickly and effectively to new market situations. The market environment will again remain challenging in the current year but our resilient business model, strong leadership and, above all, the commitment of all employees worldwide allow the Board of Directors to be optimistic that the company’s positive development will continue.”